The cryptocurrency sector is not just escaping regulation in the context of its financial practices. Because its existence is based on many realities that are still excluded from the field of legal considerations. This is for the simple reason that at the beginning of the development there are no boxes to store the digital tools. A reality that the Autorité des Marchés Financiers (AMF) has just decided to investigate regarding the communication of influencers in the financial services. With an endorsement specifically for cryptocurrencies.
influencers! The profession that the vast majority of boomers don’t understand the usefulness or meaning of. But that all persons under 30 diligently follow or dream of doing. With the main sign of recognition in the cryptocurrency sector, a horde of followers are ready to buy anything on a simple “advice”, often paid for. And some time later the same group turned into haters once the reality of the market took over from this blind enthusiasm. All without any accountability to anyone.
A new kind of communication that is now replacing specialists or other journalists in many areas. But whose repeated urges eventually show the limits of a practice far too often devoid of any minimal ethics or morals. Resulting in the promotion of all kinds of NFT scams. Or highlighting projects that would have been better left in the shadows for good reasons. Reason why the AMF just decided to team up with the Professional Advertising Regulatory Authority (ARPP) to clean up the industry.
AMF – More “responsible” influencers
The main conclusion of this news is simple: the work of influencers is subject to advertising regulations. Data that should already enable some to distance themselves from their favorite digital gurus. Because just like Coca-Cola or McDonald’s, they are not there for our happiness, but to sell their products. With special mention of the AMF in the field of financial services. Because the risks are of course greater when it comes to investing moneyeven on the advice of a “specialist” whose only real skill is to align followers (buy?)
Reason why the AMF’s new roadmap focuses on “social media “influencers” in the field of investing”. This with the help of the Responsible Influence Observatory established by the ARPP, to “present in an educational way the good practices and rules that apply in this area”. That is, “clear, accurate and non-misleading” communication. Particularly with regard to the risks incurred, but also the remunerated nature of the announcement made. An obligation in the media industry, with a “sponsored article” mention that is essential for any monetized content to be recognized as such.
AMF – “Priority Site” for Crypto Influencers
But this recent statement from the AMF nonetheless makes some changes to previous applications. Because in this case it is of course about the focus on influencers who operate in the field of cryptocurrencies. A consideration that fits within the framework of its “priority projects”. This about “communications related to digital assets and token offerings” to which NFTs could also be added. Because this last sector is currently full of all kinds of scams, to the point that more than 90% of its holders are affected.
” One of the priority projects is to prepare an ARPP recommendation to its members on communications related to digital assets and token offerings. As well as updating its general recommendation on communications related to financial products and services or of investment, which will include the provisions of the AMF doctrine on communication in sustainable finance.”
This is clearly not the first time that the Autorité des Marchés Financiers (AMF) has taken a keen interest in the cryptocurrency sector. But this is more specifically the case when it comes to influencers operating within or alongside this digital economy. And even though not all of them can be placed in the category of simple carpet sellers, a requirement of clarity and transparency seems necessary.. This is to enable their followers to distinguish the wheat from the chaff. But also to impose a necessary constraint on these digital stars in the choice and technique of promoting the crypto projects they will choose in the future. For this practice cannot absolve itself of a necessary responsibility.